With the entire world now being encouraged to switch to Electric Vehicles (EV’s), it was when rather than if Pakistan would also join the race. Especially with Imran Khan’s drive to make Pakistan clean and green again, the wheels have finally started turning in the right direction for the Pakistani Automotive Industry.
During November 2019, Pakistan approved the rather optimistic National Electric Vehicles Policy (NEVP), with the goal of observing a 30% conversion of the entire automotive industry to electric power by 2030, and an ambitious 90% by 2040. Furthermore, the policy includes a particular set of very generous incentives that shall be offered to the motorists who switch to EVs.
In a Facebook post today, Javed Afridi, a noteworthy figure in the Pakistani business community, teased some of the enticing incentives that the public would get if they switch to green power. Afridi posted the following:
These are some great tax and financing incentives for the common man an the investors. A common issue in car financing are the higher interest rates but for EVs, buyers will be paying the actual price of the vehicle even when paying in installments.
Although these incentives are quite attractive, one cannot help but question whether or not this development would ever come to pass, with the ongoing economic turmoil.
The government is operating on a different wavelength pertaining to this affair. The government foresees that the EV policy is not only likely to catalyze the climatic rejuvenation, but is also likely to do wonders for the Pakistani economy.
The government has decided to incentivize international investors to enhance the Foreign Direct Investment (FDI) inflow. That investment is to be directed towards investing in home-based EV manufacturers, assemblers and parts suppliers to create an EV manufacturing eco-systems that would aid in the betterment of the economy and ensure sustainability for the automotive industry.